D102 unit tests with precise detailed answers

D102 unit tests with precise detailed answers ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




What is a liability? - correct answer✔✔Obligation to pay cash, transfer other assets, or
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provide services to someone else ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




The Freedom Rock Corporation has total assets of $94,000 and total liabilities of $37,500.
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What is the amount of its owners' equity? - correct answer✔✔$56,500
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A company has these accounts in its financial records at the end of the year:
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Land

Retained Earnings ||\\|//||




Accounts Receivable ||\\|//||




Loans Payable ||\\|//||




Accounts Payable ||\\|//||




Capital Stock ||\\|//||




Cash

Which accounts are liabilities? - correct answer✔✔Accounts Payable and Loans Payable
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What is expense? - correct answer✔✔The amount of assets consumed through business
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operations



Orange Zest Company is a publicly traded corporation. Orange Zest Company is closely
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followed by several financial analysts. These analysts publish forecasts for what Orange
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Zest Company's net income for the year will be. If Orange Zest Company's announced net
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income is lower than the average of these analyst forecasts, the value of Orange Zest
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Company's shares can drop dramatically. The past few months have been tough ones for ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




Orange Zest Company. Orange Zest Company's chief financial officer (CFO) is worried that
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, the company will not be able to reach the amount forecasted by the financial analysts. The
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CFO is eagerly awaiting the computation of Orange Zest Company's net income for the
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year.

Here are some accounts from Orange Zest Company's financial statements:
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Cost of Goods Sold ||\\|//|| ||\\|//|| ||\\|//||




Cash

Retained Earnings ||\\|//||




Sales

Inventory

Income Tax Expense ||\\|//|| ||\\|//||




Loans Payable ||\\|//||




What should be used to compute Orange Zest Company's net income? - correct
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answer✔✔Sales, Cost of Goods Sold, and Income Tax Expense ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




Here are some accounts from Whole Pine Inc.'s financial statements:
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Inventory

Accounts Payable ||\\|//||




Number of Shares Outstanding ||\\|//|| ||\\|//|| ||\\|//||




Capital Stock ||\\|//||




Accounts Receivable ||\\|//||




Retained Earnings ||\\|//||




Net Income ||\\|//||




Building

Loans Payable ||\\|//||




What is used to compute Whole Pine's earnings per share (EPS)? - correct answer✔✔Net
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Income and Number of Shares Outstanding ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||

, The following are some financial statement items for the year for a company:
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cash paid for dividends ||\\|//|| ||\\|//|| ||\\|//||




cash received from new loans ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




cash paid to employees for wages ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




cash paid to purchase a new building ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




cash received from customers ||\\|//|| ||\\|//|| ||\\|//||




cash received from the sale of land ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




cash received as new investment from owners ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




What is included in the computation of this company's total cash from financing activities?
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- correct answer✔✔Cash paid for dividends, cash received from new loans, and cash
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received as a new investment from owners ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




What is an investing activity? - correct answer✔✔Buying buildings
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For which balance sheet account does the statement of cash flows provide a detailed
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explanation of the year-to-year change? - correct answer✔✔Cash ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




What is a use of cash in an investing activity? - correct answer✔✔Buying a building
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With respect to liabilities, what does a credit represent? - correct answer✔✔An increase
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With respect to owners' equity, what does a debit represent? - correct answer✔✔A decrease
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On January 1, a company had these assets, liabilities, and equity:
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Cash$100Inventory140Accounts Payable70Paid-In Capital150Retained Earnings20 ||\\|//|| ||\\|//|| ||\\|//||




During the year, the company entered into the following transactions: ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||